Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has ascended to fifth place in a ranking of state-owned investment organizations, boasting assets totaling over $940 billion. This milestone underscores the Kingdom’s commitment to economic diversification and strategic investments. Moreover, it positions the fund as a key player in global financial markets.
According to the US-based Sovereign Wealth Fund Institute (SWFI), PIF is steadily progressing towards its ambitious target of $1 trillion in assets by the end of 2025. This milestone, aimed at bolstering the Kingdom’s diversification efforts, reflects PIF’s robust growth trajectory and strategic vision for long-term economic sustainability.
Aramco stake
The recent acquisition of an additional 8 percent stake in Aramco has played a pivotal role in PIF’s ascent. It elevated its shareholding value to around $328 billion. This strategic move has significantly bolstered PIF’s total assets under management, which surged from $700 billion at the end of 2022 to over $940 billion currently.
The Aramco stake currently makes up approximately 37 percent of PIF’s portfolio value. This marks a significant milestone in the fund’s growth trajectory and its central role in the Kingdom’s economic diversification strategy. In addition, the SWFI forecasts that the Aramco stake will generate billions in annual dividends for the fund, reinforcing its investment capacity.
Read: Saudi Arabia’s Crown Prince transfers another 8 percent of Aramco shares to PIF
PIF’s diversification strategy
PIF’s portfolio diversification extends beyond its stake in Aramco. The fund has made substantial investments in various giga-projects and strategic initiatives that align with Saudi Arabia’s Vision 2030. Notably, the PIF established Alat, a $100 billion industrial electronics firm. Alat aims to revolutionize the semiconductor supply chain and contribute $9.3 billion to the national gross domestic product by 2030.
Moreover, PIF has ventured into the automotive sector through partnerships with industry giants like Hyundai. Moreover, it has invested in innovative companies such as Lucid and Ceer Motors. These initiatives aim to position Saudi Arabia as a prominent player in global automotive production, further diversifying the Kingdom’s economic portfolio.
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